Unveiling the Complexities: An ISM Approach to Understanding the Challenges in Biodiversity Finance Adoption

Abstract

Objective: This study identifies and categorizes the impediments to the biodiversity finance adoption system.

Research Gap: The natural ecosystem and its reproduction system are declining due to climate change and environmental deregulation, adversely affecting biodiversity and creating global concerns for all. The adoption of biodiversity finance is significant in ensuring the sustainable management of biodiversity, but this emerging concept is hindered almost at every stage of its adoption. Still, no study has highlighted the challenges of the biodiversity finance implementation system.

Design/Methodology/Approach: The present research is conducted in two phases. Initially, an extensive literature review was done to enlist biodiversity finance challenges. It was presented to a panel of fifteen experts who shortlisted them to a final set of twenty-seven barriers. Later, these barriers were ranked in eight levels of a hierarchical model. ISM and MICMAC analysis was conducted to categorize the challenges according to their intensity levels.

The Main Findings: The final results presented the knowledge gap as the critical factor causing limitations in biodiversity finance. The lack of standardized criteria and global pressures are not forcing economies to adopt biodiversity protection practices.

Theoretical / Practical Implications of the Findings: A proper regulatory framework is essential to ensure global and country-level sustainability. This study will assist financial institutions, regulatory and governing bodies, and researchers.

Originality/Value: The will add value to the existing body of knowledge of biodiversity finance by highlighting and categorizing the challenges in its implementation system.